What benefits will you gain by buying stock or ownership of a company?

1. The first, if the company had a profit, then usually you get a stock of profits called dividends. Take for example, if the per stock dividend you receive $ 100 per stock, and then by 3000 the stock you have, the total dividends you get is $ 300,000. Of course, the standard amount of dividends varies from one company to another company. But the principle is more or less the same. The more stock you have, the greater the dividend you can if that company profits.

2. The second advantage could be the value of your stock rises. Back we let you buy stock at $ 1,000. Well, if then more and more who want to buy stock, then stock prices may have increased so tell $ 1,400 per stock. Thus, if you sell it, this means you get a profit of 40 percent. Profit is called capital gains. Where do you sell stock? Not to the companies that issue stock in question, but to others who do want to have these stock.

Of course, investing in stocks is risky. Namely, the decline in stock prices that you have. For example, from $ 1000 fell to $ 600 per stock. When you sell, then you will lose $ 400 per stock. Such losses usually called capital loss. Where do you sell? Also to others who do want to have these stock.

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